What a load of Bull!
If the pax numbers were only 25% down on breakeven, then surely cutting costs would have been able to keep the route open.
The real problem could be the debts taken on earlier in the year, all created by feckless UK "management", and the overhead of running the UK side when it should have been centred in Wat months ago.
Wet leasing on the route for the last 6 months just does not add up, although it has produced a "merger", out of which a failing under utilised Newair aquire two valued PSO routes by default.
If you started a new airline and achieved 75% of target, you would be pretty pleased, but the hidden agenda here frankly stinks!
It's a shame those folks in Wat and the rest of the company have to suffer because of the legacy of mistrust and the financial chaos left over from the old regime.
As for the business of using the "threat" of pulling out as a weapon to get a grant.. well? Happy Xmas to you too!
When the new management took over earlier in the year, there were great hopes, unfortunately these have proven to be false.